Monday June 27, 2022

Advisory against illegal FX trading

By Our Correspondent
May 19, 2022

KARACHI: State Bank of Pakistan (SBP) issued an advisory on Wednesday, warning people against increasing number of offshore foreign exchange (FX) trading website, mobile application, and other related platforms.

The central bank decried digital platforms such as OctaFX, Easy Forex, and others that lure people through social media advertisements to buy/invest in their products or services.

“It is clarified for the interest of public that buying products and services being offered by aforementioned platforms by any person resident in Pakistan is prohibited and against the laws of the land,” SBP said.

Examples of such products include but not limited to foreign exchange trading, margin trading, contract for differences, etc, it added.

Any person in the country buying products or services of such offshore platforms and remitting foreign exchange directly or indirectly to them through any payment channel would make himself/herself liable to be proceeded against for violation of provisions of the Foreign Exchange Regulation Act, 1947 (FERA), SBP warned.

SBP notified that such platforms are neither regulated by the central bank nor by Securities & Exchange Commission of Pakistan (SECP).

It advised the public to refrain from buying/investing in products and services of such offshore platforms to avoid any potential loss and legal proceedings under FERA.